Deming Management Philosophy
THE DEMING’S PHILOSOPHY
Dr. W. Edward-Deming was a protege of Dr. Walter Shewhart, who pioneered statistical process control (SPC) at Bell Laboratories. He Spent one year studying under Sir Ronald Fisher, who pioneered design of experiments.
Dr. Deming is credited with providing the foundations of the Japanese quality miracle and resurgence as an economic power. He developed the following 14 points as a theory for management for improvement of quality, productivity and competitive position.
1. Create and publish the Aims and Purposes of the Organization
Management must demonstrate constantly their commitments to this statement. It must include investors, customers, suppliers, employees, the community and a quality philosophy. Organization must develop a long-term view of at least 10 years and plan to stay in business by setting long-range goals. Resources must be allocated for research, training and continuing education to achieve the goals. A family organizational philosophy
is developed to send the message that every one is part of the organization.
2. Learn the New Philosophy
Top management and every one must learn the new philosophy. Organizations must seek never ending improvement and refuse to accept non conformance customer satisfaction is the number one priority, because dissatisfied customers will not continue to purchase non confirming products and service. Every one in the organization, including the union, must be involved in the quality journey and change his or her attitude about quality.
3. Understand the Purpose of Inspection
Management must understand that the purpose of inspection is to improve the process and reduce it’s cost. Statistical evidence is required of self and supplier every effort should be made to reduce and then eliminate acceptance sampling.
4. Stop Awarding Business based on Price Alone
The organization must stop awarding business based on the low bid, because price has no-meaning without quality. The goal is to have single suppliers for each item to develop a long-term relationship of loyalty and trust thereby providing improved products and service.
5. Improve Constantly and forever the System
Management must take more responsibility for problems by actively finding and correcting. Problems so that quality and productivity are continually and permanently improved and costs are reduced. The focus is on preventing problems before they happen variation is expected but these must be a continual striving for its reduction using control charts.
6. Institute Training
Each employee must be oriented to the organization philosophy of commitment to never-ending improvements management must allocate resources to train employees to perform their jobs in the best manner possible.
7. Teach and Institute Leadership
Improving supervision is management’s responsibility. They must provide supervision with training in statistical methods and these 14 points so the new philosophy can be implemented. Instead of focusing on a negative. Fault-finding atmosphere, supervisors should create a positive, supportive one where pride in workmanship can flourish.
8. Drive out fear, Create Trust, and Create a Climate for Innovation
Management must encourage open, effective communication and teamwork. Fear is caused by a general feeling of being powerless to control important aspects of one’s life. It is caused by a lack of Job security, possible physical harm, performance appraisals, ignorance of organization goals, poor supervision and not knowing the job. Driving fear out of the work place involves managing for success. When people are treated with density, fear can be eliminated and people will work for the general good of the organization. In this climate, they will provide ideas for improvement.
9. Optimize the Efforts of Teams, Groups and Staff Areas
Management must optimize the efforts of teams, work groups and staff areas to achieve the aims and purposes of the organization. Barriers exist internally among levels of management, among departments, within departments and among shifts. To break down the barriers, management will need a long-term perspective. All the different areas must work together. Attitudes need to be changed ; communication channels opened project teams organized and training in team work implemented.
10. Eliminate Exhortations for the Work Forces
Exhortations that ask for increased productivity without providing specific improvement methods can handicap an organizations. They do nothing but express managements desires. They do not produce a better product or service, because the workers are limited by the system.
11. (a) Eliminate Numerical Quotas for the Work Force
Instead of quotas, management must learn and Institute methods for improvement. Quotas and work standards focus on quantity rather than quality. They encourage poor workman ship in order to meet their Quotas. Quotas should be replaced with statistical methods of process control.
11. (b) Eliminate Management by Objective
Instead of management by objective, management must learn the capabilities of the process and how to improve them. Internal goals set by management, without a method are a burlesque.
12. Remove Barriers that Rob People of Pride of Workmanship
Loss of pride in workmanship exists throughout organizations because
(1) Workers do not know how to relate to the organizations mission.
(2) They are being blamed for system problems.
(3) Poor designing leads to the production of ‘‘Junk’’.
(4) Inadequate training is provided.
(5) Punitive supervision exists.
(6) Inadequate or ineffective equipment is provided for performing the required work.
Restoring pride will require a long term commitment by management. When workers are proud of their work, they will grow to the fullest of their job. By restoring pride, everyone in the organization will be working for the common good. A barrier for people on salary is the annual rating of performance.
13. Encourage Education and Self-improvement for Everyone
What an organization needs is people who are improving with education. A long term commitment to continuously train and educate people must be made by management Deming’s 14 points and the organization’s mission should be the foundation of the education program.
14. Take Action to Accomplish the Transformation
Management has to accept the primary responsibility for the never-ending improvement of the process, it has to create a corporate structure to implement the philosophy. A cultural change is required from the previous ‘‘business as usual’’ attitude. Management must be committed, involved and accessible if the organization is to succeed in implementing the new philosophy.